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Messrs.
GPH ISPAT Ltd.
Crown Chamber, 325 Asadgonj
Chittagong - 4000
Bangladesh

Attn: Eng. Sayeed Shumon

Eng. Mohammed Jahangir Alam
Dr. Kamrul Islam

DATE: January 18th, 2016

OUR. REF.: Offer no. 2015-293-Rev. 00

SUBJECT:

GPH Ispat Ltd.

800.000 MTPY Minimill Project

TURN-KEY PROPOSAL

Location: Chittagong (Bangladesh)

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INDEX

1. SCOPE OF WORKS: ............................................................................................................................................ 3

1.1 OVERALL ENGINEERING, PROJECT MANAGEMENT AND SUPERVISION ..........................................................3
1.2 CIVIL WORKS .................................................................................................................................................3
1.3 MECHANICAL – PIPING ERECTION WORKS .....................................................................................................3
1.4 ELECTRICAL ERECTION WORKS .....................................................................................................................3
1.5 SUPPLY AND ERECTION OF STEEL STRUCTURES FOR MAIN PLANT BUILDINGS .............................................3
1.6 SUPPLY AND ERECTION OF TECHNOLOGICAL STEEL STRUCTURES ...............................................................3
2. BATTERY LIMITS ............................................................................................................................................... 3
3. EXCLUSIONS (AT GPH CHARGE).................................................................................................................... 4
4. TIME SCHEDULE ................................................................................................................................................ 5
5. DATA FORMATS ................................................................................................................................................. 5
6. USE OF LANGUAGES ......................................................................................................................................... 5
7. LUMP SUM PRICES ............................................................................................................................................ 5
7.1 OVERALL ENGINEERING, PROJECT MANAGEMENT AND SUPERVISION ...............................................................5
7.2 CIVIL WORKS .................................................................................................................................................6
7.3 MECHANICAL – PIPING ERECTION WORKS ........................................................................................................6
7.4 ELECTRICAL ERECTION WORKS .......................................................................................................................6
7.5 SUPPLY AND ERECTION OF STEEL STRUCTURES FOR MAIN PLANT BUILDINGS ..................................................6
7.6 SUPPLY AND ERECTION OF TECHNOLOGICAL STEEL STRUCTURES ...............................................................6
8. TERMS OF PAYMENT ........................................................................................................................................ 6

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Dear Mr. Shumon,

as per your kind request we are pleased to submit our Turn-key proposal for your kind
consideration.

1. Scope of Works:

1.1 Overall Engineering, Project Management and Supervision

Please refer to Ferretti UK Offer no. 15-50 Rev05 dated 28.11.2015.

1.2 Civil works

Execution of all civil works within the Battery Limits (see enclosed DWG no 15-293-OFF
102), including HVAC and Fire-fighting System.

1.3 Mechanical – Piping erection works

Execution of all mechanical, piping installation works within the Battery Limits (see
enclosed DWG no 15-293-OFF 102) and according to Primetals Bill of Quantities (Annex
2).

1.4 Electrical erection works

Execution of electrical installation works within the Battery Limits (DWG no 15-293-OFF
102) and according to Primetals Bill of Quantities (Annex 2).

1.5 Supply and Erection of Steel Structures for Main Plant Buildings
Supply and Erection of steel structures for Production Buildings (30.951 sq.m) within the
Battery Limits (DWG no 15-293-OFF 101).

1.6 Supply and Erection of Technological Steel Structures

Supply and Erection of technological steel structures (1.426 Ton) according to Primetals Bill
of Quantities (Annex 2).

2. Battery Limits
Battery limits are shown on respective enclosed drawings (DWG no 15-293-OFF 101, DWG
no 15-293-OFF 102, Primetals Bill of Quantities Annex 2). Cost estimation is limited to the
supplies and services within the Battery Limits.

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3. Exclusions (at GPH charge)

The following items are not included in our scope of works:
- Deep Foundation works (if required);
- Site preparation and leveling;
- Supply (free of charge) of reinforcement steel;
- Primary and secondary grounding system;
- Supply of anchor bolts for technological equipments;
- Supply of bas bars feeding line for overhead cranes;
- Custom clearance and duties;
- Erection All Risk Insurance;
- Unloading and storage of all goods at Site;
- Unpacking, hauling and handling of all materials at Site;
- Keeping free of the erection, storage and laydown areas from the external public roads at
all time;
- Materials for first filling of oils and greases;
- Installation of EOT cranes;
- Third Party inspection, certification and calibration of EOT cranes and weighing bridges
including supply of calibrated loads for testing after erection completion and all
associated fees;
- Yard piping supply and erection (no information available so far)
- Electrical distribution supply and erection (no information available so far)
- Provision of all applicable local standards/regulation required in the plant and country;
- Training regarding site regulations for Supplier's personnel;
- Getting Approval of engineering and endorsement from the local authorities for the
necessary construction/erection and building permit;
- Medical care and expenses of Supplier's personnel;
- Work visas and Work Permits of Supplier's personnel;
- Commissioning works and Performance tests;
- Plant Overall guardian and surveillance system;
- Removal of all aboveground/underground obstructions:
• Facilities (structures, aerial/underground lines, etc.);
• Structures;
• Boulders, trees, vegetation;
- Waste/hazardous materials;
- Provision of dedicated access gate(s) with the adequate security service at the existing
plant boundary;
- Adequate area (free of charge), adjacent to erection area, for Supplier's and his
Subcontractor’s temporary site facilities (office, workshop, warehouse, toilet,
prefabrication areas, living camp, etc.);
- All necessary permits and authorization to install Supplier's and his subcontractors'
temporary facilities;
- Laydown & storage areas in sufficient quantity (free of charge);
- Power for erection and temporary site facilities - free of charge (LV at TOPs shall be
provided);
- Water for erection and temporary site facilities (free of charge);

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- Telephone/ fax/ internet service;

- Sewerage network (free of charge);
- Heating, air conditioning and lighting systems for Supplier's temporary site facilities;
- Overall Plant guardian and surveillance system;
- Boundary Fencing and security provision for construction area;
- Temporary Fencing and security provisions for erection/storage areas;
- Temporary fire protection system for erection works;
- Housekeeping of erection and storage areas;
- Waste materials disposal within the site area;
- Waste materials disposal from dedicated disposal area within the Plant site to outside.

4. Time schedule
The whole project will be seen in the spirit of a short time realization of a challenging
project. The definitive Time Schedule is to be agreed.

5. Data formats
All documents, drawings, schemes, will be delivered as follows:
Text documents: Microsoft Word 2013
Spreadsheets: Microsoft Excel 2013
Time schedules: Microsoft Project 2013 or Primavera
Drawings: Autocad 2015

6. Use of languages
For the execution of the Design, Ferretti International will use the following languages:
Contractual mail: English
Drawings, plans and technical documents: English

7. Lump Sum Prices

7.1 Overall Engineering, Project Management and Supervision

Please refer to Ferretti UK Offer no. 15-50 Rev05 dated 28.11.2015.

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7.2 Civil Works

Enclosed please find our detailed BoQ and prices (Annex 1)
Estimated Cost 19,736.842,00 US$

7.3 Mechanical – Piping erection works

Our price is based on the enclosed Primetals BoQ (Annex 2)
Estimated Cost 10.870.000,00 US$

7.4 Electrical erection works

Our price is based on the enclosed Primetals BoQ (Annex 2)
Estimated Cost 3.850.000,00 US$

7.5 Supply and Erection of Steel Structures for Main Plant Buildings
Estimated Cost 18.350.000,00 US$

7.6 Supply and Erection of Technological Steel Structures

Supply and Erection of technological steel structures (1.426 Ton) according to Primetals Bill
of Quantities (Annex 2).
Estimated Cost 3.150.000,00 US$

All prices are stated in US$, VAT in Bangladesh is excluded.

8. Terms of payment
To be agreed.

While thanking you for your interest in our Company we remain at your complete disposal
for any further information you may need.

Yours faithfully, Ferretti International S.r.l.

Alberto Ferretti